Bio-Polylactic Acid (PLA) Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

Market Overview

The market for bio-polylactic acid is expected to reach USD 1,638.76 million by 2026, by registering a CAGR of around 14.96% during the forecast period (2021-2026). The major factor driving the growth of the market studied is favorable government policies toward bio-plastics. On the flip side, the high cost of PLA and the negative economic impacts of COVID-19 are expected to hinder the growth of the market studied.

The packaging industry dominated the global market share, owing to its usage in fruit and vegetable packaging in the supermarkets, for bread bags and bakery boxes, bottles, envelopes and display carton windows, and shopping or carrier bags, among others.

The growing production of genetically modified corn and the growing usage of bio-PLA in 3D printing are likely to act as opportunities in the future.

Asia-Pacific dominated the market across the globe with the largest consumption from countries, such as China and Japan.

Scope of the Report

Poly lactic acid (PLA) is a biodegradable and bio-based aliphatic polyester that can be manufactured from renewable materials such as corn, sugarcane, cassava, and sugar beet pulp. This gives PLA manufacturing a lower carbon footprint in comparison to fossil-based plastics. The bio-polylactic acid market is segmented by raw material, form, end-user industry, and geography. On the basis of rawmaterial, the market is segmented by Corn, Cassava, Sugarcane and Sugar Beet, and Other Raw Materials. By form, the market is segmented by Fiber, Films and Sheets, Coatings, and Other Forms. Based on end-user industry, the market is segmented by Packaging, Automotive, Medical, Electronics, Agriculture, Textile, and Other End-user Industries. The report also covers the market sizes and forecasts for the Bio-Polylactic Acid (PLA) Market market in 18 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).

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Key Market Trends

Packaging Segmented Expected to Dominate the Market

The packaging industry is one of the largest consumers of bio-PLA. Packaging accounts for a little over 68% of the global bio-PLA market, in 2019, in terms of revenue. Moreover, that concerns about hygiene and food safety in the context of the pandemic has become a higher priority globally. As the packaging industry is the key player, the industries that help provide essential needs, such as getting food and required supplies safely to consumers, are increasingly affected by the COVID-19.

The food packaging being the packaging industry’s largest area of activity, the USD 900 billion per year worldwide industry has been impacted enormously. The demand for packaging in the segments, such as groceries, home entertainment products, household supplies is likely to increase during the pandemic period. At the same time, several segments such as packaging for the food and pharmaceutical industries continue to see vigorous demand. The shutting down of restaurants due to pandemic has shifted the packaging demand drastically in the food area as the consumers will thus continue to move to grocery purchases. The demand has increased across the various health care packaging segments. In addition to it, the demand is expected to increase for the dietary supplements, such as vitamins, and for essential supplies, such as allergy medication. Moreover, the apprehension for the environment and climate change is driving the countries worldwide to choose biodegradable packaging materials.

Bio-PLA is majorly used in fruit and vegetable packaging in the supermarkets, for bread bags and bakery boxes, bottles, envelopes and display carton windows, and shopping or carrier bags, among others. The demand for bio-PLA in the packaging industry is increasing at a rapid pace in the European and North American regions. The increasing intervention of Food and Drug Administration (FDA) and related organizations, in terms of food safety, is promoting the usage of bio-degradable and food grade plastics for beverage and snack consumption. The restaurant chains and food processing industries are increasingly adopting the biodegradable materials for food packaging. Consumer awareness is also rising rapidly evolving, in terms of food safety, as some plastics are proven carcinogens. The growth in the packaging industry in the developing regions, such as Asia-Pacific, South America, and the Middle East, is expected to increase over the forecast period, due to the improving food packaging standards of various food and safety organizations in these regions.

Furthermore, the post-lockdown numbers indicate a systemic shift in consumer purchasing preferences from offline to online. Customers are increasingly getting used to the comforts of online shopping globally, which is expected to increase the demand for the PLA market during the forecast period. Moreover, over the forthcoming years the packaging sector is expected to benefit from, growing population, rising urbanisation and the further development of a retail infrastructure in the emerging and developing nations of Asia, Africa, the Middle East, and Eastern Europe.

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